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Posted: Sun Jun 01, 2008 6:21 pm Subject: cfsa does not allow epp in Iowa now ?

Hi - Thanks so much for taking time to read my post. Please see my first post to get some background. I live in Iowa - I need to know if PayDay Max is illegal here or not. They are going to be calling me the minute they open up in the morning - actually it is credit protection depot that will be calling. I borrowed 300.00 on 2/19 - paid 70.00 on 3/7, paid the "balance" of 352.27 on 3/21 - however - that check was returned and I thought that it had been paid. May 19th - I got an email and a phone call from credit prot. depot stating that i now owe 655.52 or they will escalate the collections. they said I had to pay 311.00 by 5/30 - well,5/30 came and I just don't have ANY money at all to pay them. I am just so scared and worried and I know that I will never sleep tonight (my husband is a cop and he will be fired if we have any sort of court anything involving finances). So, what can I do with them?
Secondly, I borrowed 500.00 from Advance America. I am not in default on this pdl. I did ask them to set up an EPP since they are a member of the cfsa - They said that the cfsa does not allow epp's in Iowa now. Has anyone heard of this? Any advice would be HUGELY appreciated! Thank You for taking time to help me.

Posted: Sun Jun 01, 2008 8:12 pm Subject:

Here is info on the EPP, straight from the CFSA website:

CFSA Best Practices and Guidelines for Extended Payment Plans
Subject to applicable state laws, each member shall provide an Extended Payment Plan (“EPP”) for customers who are unable to repay a loan. The member shall adopt a plan that offers the customer at least the following provisions:

You [the customer] may opt into an EPP to pay an outstanding loan if you are unable to repay your loan when due. Any outstanding fee will be included in the amount subject to EPP.

You must invoke the EPP by close of business on the last business day before the loan due date by returning to the office where you obtained the loan or by using whatever method you used to obtain the loan. To invoke the EPP, you must sign an amendment to your loan agreement reflecting the new payment schedule.

You may pay the transaction balance in four equal payments coinciding with your periodic pay dates.

We will not begin collection activities while you are under an EPP as long as you meet all obligations under the EPP.

There is no charge for you to enter into an EPP. However, if you default on an EPP, we may charge you an EPP fee and accelerate payment on the balance remaining, as authorized by applicable law.

Posted: Sun Jun 01, 2008 8:16 pm Subject:

You can also go to the top of the PDL forum and look for the sticky called "Payday Loan Laws for all of the States". You can click on Iowa and it should help.

Posted: Mon Jun 02, 2008 2:12 am Subject:

Hi, PayDay Max seems to be legal in Iowa, every creditor needs to obtain license to operate in the state. However, here is the state pdl law for you,

Posted: Mon Jun 02, 2008 8:35 am Subject:

Thank you ks - I did find that info on the cfsa website - but Advance america is telling me differently - I also randomly called another store here that is part of the cfsa and they said the same thing. So - I guess I just wondered if anyone has heard of this yet?

Posted: Mon Jun 02, 2008 10:16 pm Subject:

i think payday max is legal in iowa...

Posted: Tue Jun 03, 2008 7:36 am Subject:

CFSA's EPP is subject to state laws.

My guess is that since Iowa law says the loan cannot exceed 31 days, and an EPP would put you over 31 days, they are not allowed.

Posted: Tue Jun 03, 2008 7:47 am Subject:

Thanks - that does make sense, I guess. How about Payday Max - is Payday max legal in Iowa? They have allowed me to rollover - which is illegal in Iowa. So - do I need to pay them just the principal of 300.00 - or the total amount of 650 some dollars? Thanks for your time!